Chicago Action Investors 4/30/2016

[Cory Gardner]

Chicago Action Investors are back in the field, hunting for prospects and analyzing deals.  The group met at a 2 flat (3bdrm and 2bdrm) with a full basement on 48th Place. @Robin Pritts Rozan, @LaToya Harris @Sean Jones @Account Closed talked about potential rehab options, since one side of the house had more windows than the other we discussed potentially flipping the kitchen to the other side of the house.

This process would involve pulling the permits for the house which means we're now on the city of Chicago's time (3 month back-log for permits). The other option was to convert the property into a single family home with the first floor being main living area, kitchen, bathroom, office and upstairs with ~4+ bedrooms.  In either situation permits would need to be pulled so this would be a slightly longer project time.

Comps for this area were analyzed with options of rehabbing the property to an ARV ~150k with acquisition cost ~60k.

The group travelled to another prospective property on Lowe.  The area has been seeing some recent developments, (I believe there was a childcare or education center close by).  This property was a Brick 2 Flat (3bdrm/1 bath in each) with a full basement and parking space in the back.

Acquisition cost: Listed @ 29.5k however multiple buyer situation so realistically ~40k

Rehab: ~100-120k

ARV: ~240-260k range

Lots of discussion on this property, since it had a nice structure, wide space and permits probably wouldn't need to be pulled for the rehab options we discussed this would be a great project for someone looking to durn a rather decent profit with some extra money put into the rehab.  Forced air was discussed as radiator heating was originally there however since now most days its preferred to have multiple units on their own heating this would make more sense.  Also to prevent the hassle of restarting the radiator system, finding and repairing leaks. Albert and Heidi are architects so they provided us some extremely valuable insight into changing the layout of a project.